Once a major beneficiary of the artificial intelligence (AI) wave, Super Micro Computer, Inc. (SMCI) is now under a dark cloud of uncertainty. After a sharp post-earnings slide, short-seller Hindenburg Research unleashed a wave of allegations last month, accusing the company of accounting manipulations, export control violations, and self-dealing.
The report effectively resurfaced old regulatory issues, with concerns over the re-hiring of executives linked to previous scandals and deals involving CEO Charles Liang’s family-controlled suppliers. Furthermore, Hindenburg’s report also suggested sanction-dodging exports to Russia and the loss of support from key clients like Nvidia (NVDA) and Tesla (TSLA).
